ByProducts Economy (+BP Money) Wiki: Value-Add

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Wednesday, March 2, 2022

The Perpetual Multiplier

The Perpetual Multiplier, a central concept in the By-Products Economy (BPE), signifies the potential for continuous value creation and economic growth through the utilization of by-products.

Contents:

Dual Modalities of the Perpetual Multiplier
A Value-Add Phenomenon
Monetary Management and Sequestration
Summary
Related Articles
External Weblinks

Dual Modalities of the Perpetual Multiplier

The Perpetual Multiplier operates on two interconnected levels:

Commodity Multiplier: Each primary product or commodity generates a chain of potential by-products, creating a "perpetual multiplier of byproduct possibilities." For instance, a single tree can yield timber (primary product) as well as by-products like sawdust, bark, and wood chips, which can be further processed into various other products, creating a cascading effect of value creation.
Monetary Multiplier: Similar to the traditional money multiplier in banking, the issuance of By-Products Money (BPM) can trigger a "perpetual multiplier of money creation." As BPM is used to purchase goods and services within the BPE, it stimulates economic activity and generates additional by-products. These by-products, in turn, can be used to create new products and services, leading to further BPM issuance and economic growth.

A Value-Add Phenomenon

From an economic perspective, both the commodity and monetary multipliers represent a "value add" phenomenon.In the commodity multiplier, value is added by transforming by-products into new and useful products, extending the economic life of the original resource.
In the monetary multiplier, value is added by stimulating economic activity and creating new opportunities for production and consumption within the BPE.

Monetary Management and Sequestration

To ensure economic stability and prevent inflation, the governing body retains the discretionary power to sequester (reduce the supply of) BPM for each accounting cycle. This mechanism allows the government to manage the money supply and maintain the value of BPM in relation to the underlying by-products and the overall economic activity.

Summary

The Perpetual Multiplier is a key concept that underpins the potential of the By-Products Economy to generate sustainable economic growth and value creation. It highlights the interconnectedness between resource utilization, economic activity, and monetary policy within the BPE. By encouraging the efficient use of by-products and fostering a circular economy, the Perpetual Multiplier aims to create a more sustainable and prosperous future.

BPM Digital Coin: Self-Sovereign Universal Fiat

BP Money, The Currency of the ByProducts Economy

Scientific Coherence of BP Monetary Systems

Primary Issuance of BP Money: Bulk & Derivative Claims

Governance & Issuance of BP Money

External Weblinks

BPM Digital Coin Website

Primary Issuance of BP Money: Bulk and Derivative Claims

Given the ByProducts Economy, the primary issuance of BP Money to businesses is tied to the value of the byproducts they generate or utilize. To quantify this value and determine the amount of BP Money that can be issued, the system recognises an originating Bulk Claim and secondary market and Derivative Claims.

Contents:

Bulk Claims
Derivative Claims
Commodification: Origination and Monetarisation
Commodities-Based Primary Issuance
Related Articles
External Weblinks

Bulk Claim

Determinant: The Bulk Claim is attached to the primary product itself. It represents the potential value of all by-products that can be derived from that primary product throughout its lifecycle.
BP Money Multiplier: The Bulk Claim serves as the basis for calculating the BP Money Multiplier for the primary product. This multiplier determines the amount of BP Money that the business is authorized to issue for each unit of the primary product sold or processed.

Derivative Claim

Determinant: Derivative Claims are associated with the second and subsequent order by-products generated from the primary product. They represent the value of these by-products and their potential for further transformation or utilization within the ByProducts Economy.
BP Money Multiplier: Each Derivative Claim also has a corresponding By-Products Money Multiplier, which determines the amount of BP Money that can be issued based on the value and quantity of the specific by-product.

Commodification: Origination and Monetization

The distinction between Bulk and Derivative Claims allows for a more nuanced and precise valuation of by-products within the ByProducts Economy. It recognizes that the value potential of by-products extends beyond the initial stage of production and can be realized through multiple stages of transformation and utilization.

Incentivizing ByProduct Utilization: By assigning value to by-products through Derivative Claims, the system encourages businesses to explore innovative ways to utilize these resources, promoting a circular economy and reducing waste.
Dynamic Value Creation: The Perpetual Multiplier concept, where each by-product can lead to the generation of further byproducts, is supported by the system of Derivative Claims. This fosters a dynamic process of value creation within the ByProducts Economy.
Transparent Accounting: The use of Bulk and Derivative Claims provides a transparent and accountable mechanism for tracking the value of byproducts and the associated BP Money issuance.

Commodities-Based Primary Issuance

The concepts of Bulk and Derivative Claims play a crucial role in the primary issuance of BP Money. They provide a framework for valuing by-products and determining the appropriate amount of BP Money that can be issued by businesses. This system encourages sustainable practices, promotes a circular economy, increased job creation and facilitates transparent accounting within the By-Products Economy.

External Weblinks

BPM Digital Coin Website

Thursday, April 25, 2019

Binary 1 (Real)

This article explores the creation of material goods through the lens of an expanded "material binary," which describes the interplay between primary and secondary industries in transforming raw materials into finished products. This framework highlights the distinct yet interconnected processes involved in bringing material goods into existence.

Contents:

Formation (Self Capacitance)
Formulation (Mutual Capacitance)
Significance
Summary
Related Articles
External Links

Formation (Self Capacitance)

This stage represents the accumulation and extraction of natural resources from the environment. It encompasses activities such as:

Agriculture: Cultivating crops and raising livestock for food, fibers, and other raw materials.
Mining: Extracting minerals, metals, and fossil fuels from the earth.
Forestry: Harvesting timber and other forest products.
Fishing: Catching fish and other seafood.

These activities harness the inherent potential (self capacitance) of natural resources, laying the foundation for the creation of material goods.

Formulation (Mutual Capacitance)

This stage involves the transformation of raw materials into finished products through manufacturing processes. It encompasses a wide range of activities, such as:

Industrial production: Using machinery and technology to transform raw materials into finished goods.
Construction: Building structures and infrastructure using processed materials.
Craftsmanship: Creating handcrafted goods using traditional skills and techniques.
Food processing: Transforming raw ingredients into edible products.

Formulation relies on the interaction (mutual capacitance) between different materials and processes, combining them to create goods with specific properties and functions.

The Expanded Material Binary

This framework expands the traditional understanding of the material binary by emphasizing the distinct yet interconnected nature of formation and formulation. It highlights the flow of materials from their natural state to finished products, showcasing the value added at each stage.

Significance

Understanding the expanded material binary offers several insights:

Resource Management: It emphasizes the importance of sustainable resource management to ensure the continued availability of raw materials for future generations.
Technological Advancement: It highlights the role of technological innovation in improving the efficiency and sustainability of both formation and formulation processes.
Value Creation: It demonstrates how value is added at each stage of the material binary, from the extraction of raw materials to the creation of finished products.
Economic Development: It showcases the interconnectedness of primary and secondary industries, contributing to economic growth and employment opportunities.

Summary

The creation of material goods is a complex process that involves the transformation of natural resources into finished products. The expanded material binary, encompassing formation and formulation, provides a framework for understanding this process and its significance in the modern economy. By recognizing the distinct yet interconnected nature of these stages, we can promote sustainable resource management, technological advancement, and economic development.

External Weblinks